‘TNPA must balance increases with need to be globally competitive’

As South Africa’s port productivity issues continue to dominate the headlines, the likes of Walvis Bay and Maputo clearly understand the opportunity this represents and are driving to improve levels of service, says Safmarine’s Africa region executive Jonathan Horn. “The ability of economies to grow depends on their having world-class infrastructure that offers importers and exporters a very competitive supply chain – because dollars and cents matter,” says Horn. “In any country it is fundamental that you have productive infrastructure – from ports to landside – and this applies as much to South Africa as it does to any other African country. “We are competing against other economies of the world which means you have to scrutinise every element of your supply chain to ensure it adds value.” Commenting on Transnet’s proposed 18% tariff increase, Horn says that while such an increase was clearly high in the context of current CPI levels, it’s not only about the level but also about what that increase will deliver. “I’m sure TNPA understands that at the end of the day they play an important role in the economic growth of the country. We all have a role to play to ensure that things work for the good of the country to make team South Africa competitive. “While port users understand that TNPA must get a return on investment and in an inflationary environment increases are likely to be necessary from time to time to achieve that, these must be balanced with the competitive global world in which we operate – which demands continuous improvement in efficiencies and cost-competitiveness. Everyone must scrutinise their own operating costs and efficiencies to see where they can continuously improve in terms of their own productivity and take costs out of the supply chain.”